"The people of New Hampshire have made it clear that they want to restore balance, that they want us to work together," Hassan said. "Let us promise ourselves today that we will meet our challenges by focusing on commonsense solutions born of collaboration. That we will together end the era of hasty, reactive government."

In her address, Hassan said the state must support priorities such as education funding and business innovation. State spending has been cut in recent years, and Hassan campaigned in part on restoring some of those cuts.

"While we are seeing signs of recovery and growth, we still face fiscal uncertainty," she said. "We will need to be prudent as we develop our budget."

Hassan said she would reject attempts to increase revenue through a sales or income tax.

"To those of you who believe deeply in an income tax, I ask you to put that aside," she said. "I will veto an income or sales tax. And as we build our next budget, though we have much to address, we must acknowledge that we will not be able to do everything all at once."

Hassan criticized some of the decisions made by the previous legislature.

"Cutting state support for public education in half while lowering the tobacco tax two years ago was short-sighted," she said, to lengthy applause from House Democrats. "It hurt our young people and, if not quickly addressed, will impair our future economic prosperity."

Hassan said the state, faced with an aging population, needs to do more to ensure that those who grow up in New Hampshire stay in New Hampshire.

"We need to renew our tradition of attracting new citizens to our state, and we need to help our young people stay here, raise their own families here, and remain part of the future of New Hampshire," she said.

A priority for Hassan is restoring cuts to the university system. She said that the university system also needs to freeze in-state tuition and admit more New Hampshire students to the state's colleges and universities.

Hassan said state schools should focus on skills that will be needed in the coming years.

"We must work with teachers, local schools, higher education and the business community to ensure a robust and rigorous education for all of our students, including in the STEM fields of science, technology, engineering and math," she said.

Hassan said the state has become a model for inclusiveness, noting that women are in top positions of power in the state following the 2012 elections.

"We are a model for including both men and women in our political process, exemplified today when a woman Supreme Court chief justice swore in a woman governor," she said.

She said the state's efforts to end discrimination against people with disabilities and to grant marriage equality to same-sex couples make New Hampshire a better place for businesses and families.

"As has been true throughout our history, every time we bring more people in from the margins -- into the heart and soul of our democracy -- we get stronger," Hassan said.

The chamber gave a lengthy standing ovation when Hassan thanked her predecessor, Gov. John Lynch, who retired after serving eight years in the office.

Senate Republican leader Jeb Bradley voiced his support for the governor in a statement.

“We were pleased to hear the governor is focused on attracting and retaining good employers and a skilled New Hampshire workforce,” Bradley said.

Gov. Hassan will be in Manchester Friday to highlight the potential benefits of doubling the research and development tax credit. Sen. Bob Odell has already filed a bill to double the tax credit and make it permanent.

The onslaught on Houthis rebels in Yemen continued Tuesday, with the Saudi-led coalition asserting increasing control while locals fled the chaos and casualties piled up -- dozens of civilians among them.